An ethical analysis of chief executive officer (CEO) salaries can be approached via theory on distributive justice and an examination of some corporate codes of ethics. U.S. CEO salaries are compared with their Japanese and European counterparts, and factors behind the high U.S. CEO salaries are reviewed. The negative repercussions of high pay are discussed, including feelings of unfairness, declining morale and greater cynicism found in lower level employees. Reduced research and development budgets, and downsized organizations are related to the (...) maintenance of high CEO salaries. After considering economic repercussions, recommendations for reform, which lead to the greatest expected benefit of the least advantaged, are made. (shrink)

This paper proposes that managers add an attention to virtues and vices of human character as a full complement to moral reasoning according to a deontological focus on obligations to act and a teleological focus on consequences (a balanced tripartite approach). Even if the criticisms of virtue ethics cloud its use as a mononomic normative theory of justification, they do not refute the substantial benefits of applying a human character perspective – when done so in conjunction with also-imperfect act-oriented perspectives. (...) An interactive tripartite approach is superior for meeting the complex requirements of an applied ethic. To illustrate how deficiencies of a "strong" virtue ethics formulation can be overcome by a balanced tripartite approach, this paper compares normative leadership paradigms (each based on a combination of virtue, deontology, or consequentialist perspectives) and the dangers inherent in each. The preferred paradigm is servant leadership, grounded in a tripartite ethic. Effective application of such an ethics approach in contemporary organizations requires further empirical research to develop a greater understanding of the moral language actually used. Meeting this challenge will allow academics better to assist practicing managers lead moral development and moral reasoning efforts. (shrink)

This paper takes a critical look at the empirical studies assessing the effectiveness of teaching courses in business and society and business ethics. It is generally found that students' ethical awareness or reasoning skills improve after taking the courses, yet this improvement appears to be short-lived. The generalizability of these findings is limited due to the lack of extensive empirical research and the inconsistencies in research design, empirical measures, and statistical analysis across studies. Thus, recommendations are presented and discussed for (...) improving the generalizability and sophistication of future research efforts in this area. (shrink)

As a transitional economy, Vietnam has undergone tremendous changes over recent decades within a ‘fusion’ context that blends both traditional and modern values from its complex history. However, few studies have explored how contemporary issues in the context of Vietnam have brought both obstacles and skillful initiatives to managerial approaches to doing business. We draw on the concepts of social trust and institutional theory to explore how informal institutions such as religious forces can contribute to the development of individual trust (...) and whether individuals are willing to extend trust beyond familial networks. We contribute to the notion of a moral conception of trust by exploring how Buddhism in particular has initiated distinctive managerial approaches in the context of Vietnam, in response to dilemmas of social trust. Our findings highlight that as an informal institution, engaged Buddhism yields significant impact on the formation of social trust. We carried out in-depth interviews in Vietnam with 33 organizational leaders who were Buddhist practitioners, using thematic analysis to elucidate our findings and arguments. The study reveals how the incorporation of Buddhist principles has fostered context-sensitive, non-extreme, and reflexive managerial approaches to enhance morality as a response to social trust issues. (shrink)

In recent years, the business ethics literature has exploded in both volume and importance. Because of the sheer volume and diversity of this literature, a review article was deemed necessary to provide focus and clarity to the area. The present paper reviews the literature on business ethics with a special focus in marketing ethics. The literature is divided into normative and empirical sections, with more emphasis given to the latter. Even though the majority of the articles deal with the American (...) reality, most of the knowledge gained is easily transferable to other nations. (shrink)

For several decades, business has operated according to the tenets of neoclassical economic theory, where the primary obligation of corporations is to maximize profit for shareholders. However, the larger social mandate for business has changed, represented by the rise of language such as "sustainable development", "corporate social responsibility" (CSR) and "stakeholder groups." Nevertheless, the theoretical shift implied by the use of such language has not occurred. Issues of sustainable development and CSR continue to be justified in the terms of neoclassical (...) economic theory through the rationalization of "doing well by doing good".Within this economic paradigm, CSR cannot move beyond enlightened self-interest (acting in socially responsible ways in order to further one''s own ends) because all behavior must be justified economically. This implies that corporate socially responsible behavior will simply cease when it becomes uneconomic, regardless of the impact on interrelated systems which in turn will re-impact the business realm. (shrink)

Business ethics has emerged in recent years as a field of significant scholarly endeavour. Particularly well documented is the existence of ethical conflict at work and the reported inseparability of business decisions and moral consequences. However, to date, the majority of studies have been conducted in the American business context.This paper examines the concept of ethical conflict as experienced by employees in the Australian context. According to a sample of Western Australian managers, ethical conflicts at work do occur — with (...) relative frequency. Of considerable concern is the high incidence of cases where the demands of superiors are deemed to be the cause of this conflict. This finding is particularly disturbing as superiors are also the primary influence on employee ethical decision making. It would see that the ethics role models are also the instigators of unethical behaviour. (shrink)

In this paper, we present an ethical and strategic approach to managing organizational crises. The proposed crisis management model (1) offers a new approach to guide an organization’s strategic and ethical response to crisis, and (2) provides a two-by-two framework for classifying organizational crises. The ethically rational approach to crisis draws upon strategic rationality, crisis, and ethics literature to understand and address organizational crises. Recent examples of corporate crises are employed to illustrate the theoretical claims advanced. Finally, the paper provides (...) guidelines for a morally optimal outcome for the organization and its stakeholders. (shrink)

Four real-life dilemma cases collected from Hong Kong managers were included, along with two other cases previously used by Weber (1991), in an instrument designed to assess ethical reasoning capacity. This was completed by 86 part-time post-graduate students, all of whom were managers with at least four years working experience. Respondents'' measured ethical reasoning capacity appeared to be at least as high as comparable samples in the U.S.A. The mean ethical reasoning stage varied between cases. Contrary to expectations, the unfamiliarityper (...) se of a case did not affect ethical reasoning which instead tended toward higher measured stages when issues of public hazard or environmental pollution were introduced, and toward lower measured stages where personal or family finances were at stake. Two methodological points were made signalling the need for caution in research of this kind. First, because of reservations about the adequacy of the standard Kohlbergian model of ethical reasoning development, a scoring guide based on a revised Kohlbergian model of ethical reasoning was used to analyze the replies, rendering comparisons with other samples inexact. Second, the possible phenomenon of quasi Stage Five reasoning renders problematic the identification of true Stage Five ethical reasoning. (shrink)

Many leading management scientists have advocated ethicalism: the incorporation of social and ethical concerns into traditional "rational" OR-MS techniques and management decisions. In fact, elementary forms of decision analysis can readily be augmented, using ethical theory, in ways that sweep in ethical issues. In addition, alternative conceptual models of Decision-Analysis, Game-Theory and Optimality are now available, all of which have brought OR-MS and Business-Ethics into a closer alignment.

In today's complex business world, the question of business ethics is increasingly gaining importance as managers and employees face numerous ethical dilemmas in their jobs. The ethical climate in the Turkish business environment is also at a critical stage, and the business community as a whole is troubled by ethical problems. This study attempts to determine the effect of individual, managerial and organizational factors on the ethical judgments of Turkish managers, and to evaluate the ethical perceptions of these managers. The (...) findings of this study reveal that the ethics score, the measure of ethical judgment, of Turkish managers differs significantly only with respect to gender and that female managers have higher ethics score than male managers. Other individual, managerial and organizational factors considered in this study do not have any significant effect on the ethical judgments of the managers. A comparative analysis between female and male managers in terms of their ranking of the eleven ethical business scenarios, ranking of the sixteen unethical acts, ranking of the factors influencing managers to engage in unethical practices, and ranking of the various parties to whom a company is socially responsible enables the researchers to enlighten the subject of business ethics in Turkey. (shrink)

Crisis prevention plans are usually evaluated based on their effects in terms of preventing or limiting organizational crisis. In this survey-based study, the focus was instead on how such plans influence employees’ reactions in terms of risk perception and well-being. Five different organizations were addressed in the study. Hypothesis 1 tested the assumption that leadership crisis preparation would lead to lower perceived risk among the employees. Hypothesis 2 tested the conjecture that it would also lead to a higher degree of (...) well-being. Both hypotheses were supported. The results and their implications are discussed. (shrink)

How can one establish if a corporate code of ethics is ethical in terms of its content? One important first step might be the establishment of core universal moral values by which corporate codes of ethics can be ethically constructed and evaluated. Following a review of normative research on corporate codes of ethics, a set of universal moral values is generated by considering three sources: (1) corporate codes of ethics; (2) global codes of ethics; and (3) the business ethics literature. (...) Based on the convergence of the three sources of standards, six universal moral values for corporate codes of ethics are proposed including: (1) trustworthiness; (2) respect; (3) responsibility; (4) fairness; (5) caring; and (6) citizenship. Relying on the proposed set of universal moral values, implications are discussed as to what the content of corporate codes of ethics should consist of. The paper concludes with its limitations. (shrink)

This paper seeks to advance our thinking about values and justice by studying the relationship between these constructs at the organizational level. We hypothesize that collective perceptions of moral values in organizational settings will influence collective perceptions of justice. Survey results from 619 individuals in 108 departments strongly support our hypothesis that collective values influence perceptions of both procedural and overall justice climate. We discuss these results, and their implications for thinking about relationships between moral values and justice at even (...) higher levels of analysis such as society overall. (shrink)

The study examines employee, managerial, and ethics officer perceptions regarding their companies codes of ethics. The study moves beyond examining the mere existence of a code of ethics to consider the role that code content and code process (i.e. creation, implementation, and administration) might play with respect to the effectiveness of codes in influencing behavior. Fifty-seven in-depth, semi-structured interviews of employees, managers, and ethics officers were conducted at four large Canadian companies. The factors viewed by respondents to be important with (...) respect to code effectiveness include: provisions of examples; readability; tone; relevance; realism; senior management support; training; reinforcement; living up to standards; reporting requirement; anonymous phone line; communicating violations; and enforcement. The factors found to be potentially important include: justification for provisions; employee involvement; and sign-off requirements. Factors found not to be important include: objectives for the code; prior distribution; testing; and relating ones performance review to compliance with the code. (shrink)

What might happen if business leaders across the globe viewed their work as a sacred calling in a religious sense? Might not the world be a far better place? This paper is an effort to stimulate debate and discussion on this topic. Concepts addressed include: (a) ethics in business, (b) ethical standards in business settings, (c) the role of law, (d) levels of corporate responsibility, (e) the role of religion in business ethics, (f) the idea of business as a calling (...) in a religious sense, (g) the elements of modern corporate culture, (h) creating an ethical corporate culture, (i) demonstrating corporate social responsibility, and (j) providing servant leadership. The introduction to the paper shows how these concepts interrelate; its conclusion offers a challenge to business leaders to answer their call to business in the truest sense. (shrink)

Although the foundation of financial accounting and auditing has traditionally been based upon a rule-based framework, the concept of a principle-based approach has been periodically advocated since being incorporated into the AICPA Code of Conduct in 1989. Recent high profile events indicate that the accountants and auditors involved have followed rule-based ethical perspectives and have failed to protect investors and stakeholders – resulting in a wave of scandals and charges of unethical conduct. In this paper we describe how the rule-based (...) traditions of auditing became a convenient vehicle that perpetuated the unethical conduct of firms such as Enron and Arthur Andersen. We present a model of ten ethical perspectives and briefly describe how these ten ethical perspectives impact rule-based and principle-based ethical conduct for accountants and auditors. We conclude by identifying six specific suggestions that the accounting and auditing profession should consider to restore public trust and to improve the ethical conduct of accountants and auditors. (shrink)

There is an increasing demand for ethical and Corporate Social Responsibility practices by companies. This competence has to be introduced in students’ training in business degree programs, and a check must then be done to determine if the students have come to appreciate the importance of CSR commitments. Using the framework of Stakeholders Theory, this work aims to examine students’ perceptions of ethical and CSR practices and commitment to different stakeholders, as well as the factors that lead students to act (...) in a socially responsible way. Furthermore, we hope to identify how the perception of CSR can be improved when Web 2.0 and social media tools that have proven effective in transmitting emotions and values are used in classrooms to teach these ideas. To this end, a survey was carried out in the year 2019 with 1,030 first-year students; it was administered at the beginning of the semester and also at the end of the semester after the training activities had been carried out. The main finding of the research is that students start with the belief that ethics and CSR are developed for reasons of image and legitimacy; however, after receiving training on these topics through tools that take into account emotions and values, they start to value the importance of the company as an agent of social change. The main practical and managerial implication is that methods based on Web 2.0 and social media tools are useful to teach ethics and CSR; the theoretical contribution is that students take into account the welfare of others. This finding contributes to Stakeholder Theory in a higher education context. (shrink)

This comparative field study evaluated the moral reasoning used by U.S. and Belizean business students in resolving business-related moral dilemmas. The Belizeans, citizens of a less-developed country with Western heritage and a values-based education system, revolved the dilemmas using higher stages of moral judgment than did the U.S. business students.

The need to fill three gaps in ethics research in a business context sparked the current study. First, the distinction between the concepts of “ethical” and “legal” needs to be incorporated into theory building and empiricism. Second, a unifying theory is needed that can explain the variables that influence managers to emphasize ethics and legality in their judgments. Third, empirical evidence is needed to confirm the predictive power of the unifying theory, the discernable influence of personal and organizational variables, and (...) the importance of the issue to the managers in determining their emphasis on the ethical and legal values of their judgments. Focused on these needs, the current research combines social identity theory with empirical findings from business ethics research. This theory building initiative framed hypothesis-driven research to investigate the influences on managers’ emphasis on ethical and legal values in making business judgments. An empirical research study was conducted involving 252 practicing managers who judged 12 newsworthy business events. Data was collected on the managers’ individual factors, on the groups that influence their judgments, and on the importance that the managers place on ethics and legality in judging the 12 scenarios. The research findings contribute to theory development (1) By successfully utilizing a blended extension of social identity and issue-contingent theories to understand managers’ judgments, and (2) By providing evidence on the relationships between the perceived importance of an issue and the emphases managers place on ethical and legal values in their judgments. The analysis of the data was extended to provide insights on the needs of employers to tailor management training on legal and ethical decision-making. The participating managers were clustered according to their emphases on Ethical Importance and Legal Importance in judging business situations. Analysis of Variance was then combined with Scheffé Multiple Comparison Tests to assess whether the factors derived from a blended extension of social identity and issue-contingent theories were significantly different across the clusters. The product of this analysis is unique sets of attributes that describe each cluster of managers, and provide an empirical basis for determining training priorities. Finally, the carefully constructed and thoroughly tested 12 research scenarios that form the core of the survey instrument enable their redeployment in subsequent research and their use by practicing executives who wish to compare data provided by their managers to results from the study participants. (shrink)

In this paper, we challenge the commonly held assumption that actors in the education sector are largely ethical, and that there is therefore little need to scrutinize leader behaviors in this sector. We also overcome past scholars’ tendencies to either focus selectively on positive leader behaviors, or to stay content with categorizing leader behaviors into effective and ineffective. Using data from three case studies previously conducted in eight British and French academic establishments, we show that not only do negative leader (...) behaviors abound in the education sector, but they can also be differentiated into three types: behaviors emanating from leaders’ lack of functional skills i.e., ineffective behaviors, behaviors emanating from leaders’ insouciance toward harming the organization and its members i.e., dysfunctional behaviors, and behaviors emanating from leaders’ lack of honesty, integrity, ethicality, and transparency i.e., unauthentic behaviors. We enrich current understanding on ineffective, dysfunctional, and unauthentic leader behaviors, and offer a unified framework of negative leader behaviors in the academic sector. Since each type of negative behavior emanates from different motivational drivers, different measures are required to curb them. These are also discussed. A comparison of our findings with those from leadership studies in other sectors reveals that negative leader behaviors in the education sector are quite similar to those in other sectors. (shrink)

Jones (1991) has proposed an issue-contingent model of ethical decision making by individuals in organizations. The distinguishing feature of the issue was identified as its moral intensity, which determines the moral imperative in the situation. In this study, we adapted three scenarios from the literature in order to examine the issue-contingent model. Findings, based on a student sample, suggest that (1) the perceived and actual dimensions of moral intensity often differed; (2) perceived moral intensity variables, in the aggregate, significantly affected (...) an individual''s moral judgments; and (3) some dimensions of moral intensity (namely, perceived social consensus and perceived magnitude of consequences) mattered more than others. (shrink)

This paper investigates the ethical challenges facing managers in Western Australia. It identifies the ethical issues that managers confront in international business. Managers in this research have identified a number of significant ethical issues when discussing the ethical incidents that occurred in their international dealings. The research shows a degree of congruence between managers'' experiences and establishes the main ethical dilemmas encountered, how they felt and actions taken when confronted with an ethical dilemma.

Classroom cases and decision making models used in the teaching of business ethics may be inconsistent with the actual needs of practicing manager students. Three summary cases written by practicing manager students are included in this paper as well as evidence that concerns a focus more on interpersonal dilemmas rather than top management decisions. As well, the relevancy of philosophical perspectives of ethical decision models is questioned. More practical, hands-on models for ethical decisions are provided. Finally, conclusions of relevancy for (...) the field are drawn. (shrink)

Adequate discussion of individuals' moral deliberation is notably absent from much of the literature on corporate social responsibility (CSR). We argue for a refocusing on the role of the individual in that context. In particular we regard this as important in CSR course design, for practical, pedagogical and moral reasons. After addressing some of the theoretical background to our argument, and noting some respects in which individual action features in the context of CSR, we consider the usefulness (or otherwise) of (...) academic ethical theory in relation to CSR issues and dilemmas in practice. It is suggested that, without dispensing entirely with ethical theory, emphasis should be placed on informed debate and moral judgement among members of organisations (or seminar groups) and some short case examples are provided. Finally we suggest that such approaches may be appropriate if trends towards ‘mainstreaming’ concern for CSR throughout business school curricula are realised. (shrink)

Adequate discussion of individuals' moral deliberation is notably absent from much of the literature on corporate social responsibility (CSR). We argue for a refocusing on the role of the individual in that context. In particular we regard this as important in CSR course design, for practical, pedagogical and moral reasons. After addressing some of the theoretical background to our argument, and noting some respects in which individual action features in the context of CSR, we consider the usefulness (or otherwise) of (...) academic ethical theory in relation to CSR issues and dilemmas in practice. It is suggested that, without dispensing entirely with ethical theory, emphasis should be placed on informed debate and moral judgement among members of organisations (or seminar groups) and some short case examples are provided. Finally we suggest that such approaches may be appropriate if trends towards ‘mainstreaming’ concern for CSR throughout business school curricula are realised. (shrink)

Learning to address moral dilemmas is important for participants on courses in business ethics and corporate social responsibility (CSR). While modern, rule-based ethical theory often provides the normative input here, this has faced criticism in its application. In response, post-modern and Aristotelian perspectives have found favour. This paper follows a similar line, presenting an approach based initially on a critical interpretation of Ross's theory of prima facie duties, which emphasises moral judgement in actual situations. However, the retention of a modern (...) element is suggested, with an invitation to hypothetically universalise detailed proposals for action, following Hare. This further step may reassure students/managers who seek additional closure in their decision-making. Some pedagogical implications are also briefly raised regarding the use of case material and the need to recognise questions of social interaction and personal character as features of dilemma resolution in actual organisational contexts. (shrink)

Learning to address moral dilemmas is important for participants on courses in business ethics and corporate social responsibility (CSR). While modern, rule‐based ethical theory often provides the normative input here, this has faced criticism in its application. In response, post‐modern and Aristotelian perspectives have found favour. This paper follows a similar line, presenting an approach based initially on a critical interpretation of Ross's theory of prima facie duties, which emphasises moral judgement in actual situations. However, the retention of a modern (...) element is suggested, with an invitation to hypothetically universalise detailed proposals for action, following Hare. This further step may reassure students/managers who seek additional closure in their decision‐making. Some pedagogical implications are also briefly raised regarding the use of case material and the need to recognise questions of social interaction and personal character as features of dilemma resolution in actual organisational contexts. (shrink)

In this paper, we develop a conceptual framework of the intra-firm transfer of best practices in moral reasoning by integrating three streams of literature: internal knowledge transfer in strategic management, moral reasoning and epistemology in philosophy and business ethics, and leader–member exchange in human resource management. We propose that characteristics of moral reasoning (nature of moral knowledge, tacitness of moral reasoning and causal ambiguity), source characteristics (moral development of leaders), target characteristics (integrity capacity and moral development of subordinates), leader–member exchange (...) and internal ethical climate influence the transfer of best practices in moral reasoning. (shrink)

Four predictors were posited to affect business student attitudes about the social responsibilities of business, also known as corporate social responsibility (CSR). Applying Forsyth's (1980, "Journal of Personality and Social Psychology" 39, 175–184, 1992, "Journal of Business Ethics" 11, 461–470) personal moral philosophy model, we found that ethical idealism had a positive relationship with CSR attitudes, and ethical relativism a negative relationship. We also found materialism to be negatively related to CSR attitudes. Spirituality among business students did not significantly predict (...) CSR attitudes. Understanding the relationship between CSR attitudes and the significant predictors has important implications for researchers and teachers in particular. (shrink)

This paper presents conceptual arguments to suggest that trust within organizations and trustworthiness of organizations are built through ethical governance mechanisms. We ground our analysis of trust, trustworthiness, and stewardship in the business literature and provide the context of business school governance as the focus of our paper. We present a framework that highlights the importance of knowledge, resources, performance focus, transparency, authentic caring, social capital and citizenship expectations in creating a basis for the ethical governance of organizations.

The buyer–supplier relationship is the nexus of the economic partnership of many commercial transactions and is founded upon the reciprocal trust of the two parties that participate in this economic exchange. In this article, we identify how six ethical elements play a key role in framing the buyer–supplier relationship, incorporating a model articulated by Hosmer (The ethics of management, McGraw-Hill, New York, 2008 ). We explain how trust is a behavior, the relinquishing of personal control in the expectant hope that (...) the other party will honor the duties of a psychological contract. Presenting information about six factors of organizational trustworthiness, we offer insights about the relationship between ethics and trust in the buyer–supplier relationship. (shrink)

Ethics in business has been an increasingly controversial and important topic of discussion over the last decade. Debate continues about whether ethics should be a part of business, but also includes how business can implement ethical theory in day-to-day operations. Most discussions focus on either traditional moral philosophy, which offers little of practical value for the business community, or psychological theories of moral reasoning, which have been shown to be flawed and incomplete. The theory presented here is called the Developmental (...) Self-Valuing Theory, and adapts the general psychological theory of Albert Bandura for ethics in business. In this theory, individuals first learn moral values from associations with others who are significant in their lives. Secondly, self-regulation is learned through a process of self-observation, self-judgment and self-reaction. Thirdly, the individual must believe that he can act ethically. Situational constraints and inducements, as well as positive and negative consequences for specific behaviors, will also affect the level of ethical performance. Each of these elements is examined and combined to achieve a practical method for increasing the level of ethics in corporate activity through selection, training and situational enhancement. (shrink)

Ethics in Business organizations is a multidimensional process involving decision-making, leadership and institution building. The relatively simpler ethics of day-to-day decisions has to be reflected upon in the context of corporate desire for continuity, embedded in the values of a progressive society. At the operating level, the multivalence of decision situations is emphasized in place of the simple good — bad or cost — benefit dichotomies. A decision tree framework is presented to reflect the richness of the decisions. At the (...) corporate level, the concept of responsive strategy as a synthesis of vision, power, and responsibility is proposed. In this, the crucial role of leaders cannot be over-emphasized. Finally, at the societal level, the evolution of capitalism and its corporate forms is seen as a milestone in people''s search for enlightened ways to achieve refined ends. As more businesses assert their rightful roles in society, progressive institutional forms more in tune with the values of the twenty-first century should emerge. (shrink)

This paper argues that the concept of reliability provides a useful framework for analyzing defects in organizational design and for prescribing changes that will facilitate ethical decision making. Reliability becomes an ethical concern when the individual or organizational interest diverges from the collective interest. Redundancy and requisite variety provide two design tools which can enable organizations to act reliably in the collective interest. The paper then discusses potential disadvantages to the use of a reliability framework as well as possible problems (...) of implementation. It concludes by examining avenues for future research. (shrink)

Increasingly research in the field of business and society suggests that ethics and corporate social responsibility can be profitable. Yet this work raises a troubling question: Is it ethical to use ethics and social responsibility in a strategic way? Is it possible to be ethical or socially responsible for the wrong reason? In this article, we define a strategy concept in order to situate the different approaches to the strategic use of ethics and social responsibility found in the current literature. (...) We then analyze the ethics of such approaches using both utilitarianism and deontology and end by defining limits to the strategic use of ethics. (shrink)

This article argues why and how a participatory approach to implement corporate social responsibility (CSR) in a cluster would be beneficial for small- and medium-sized enterprises (SMEs) who are members of the NCE – Subsea cluster in Bergen, Norway. The political and strategic reasons as well as internal motivation for SMEs to incorporate CSR into their business strategies are discussed with support from relevant literature. Furthermore, we offer a discussion on the characteristics of different approaches to incorporating CSR as part (...) of business strategy and provide examples from the Norwegian context. As part of this discussion, we look into some of the clusters in Europe which have adopted a systematic approach to implement CSR as part of their agenda. We propose a means to undertake CSR as part of the cluster through a network model to address the limitations faced by the SMEs when they try to implement CSR individually. A network model (cluster approach) to CSR will motivate the uptake of CSR among SMEs when the network (cluster) is characterized by close geographical proximity and operates in the same sector. The uptake of CSR as part of the network (cluster) agenda can also lead to innovation through cooperation and competition. The particular challenges faced by the SMEs in implementing and sustaining CSR can be also minimized by being part of a network (cluster). (shrink)

The literature acknowledges a distinction between immoral, amoral and moral management. This paper makes a case for the employee (at any level) as a moral agent, even though the paper begins by highlighting a body of evidence which suggests that individual moral agency is sacrificed at work and is compromised in deference to other pressures. This leads to a discussion about the notion of discretion and an examination of a separate, contrary body of literature which indicates that some individuals in (...) corporations may use their discretion to behave in a socially entrepreneurial manner. My underlying assumption is that CSR isn’t solely driven by economics and that it may also be championed as a result of a personal morality, inspired by employees’ own socially oriented personal values. A conceptual framework is put forward and it is suggested that individuals may be categorized as Active or Frustrated Corporate Social Entrepreneurs; Conformists or Apathetics, distinguished by their individualistic or collectivist personal values. In a discussion of the nature of values, this paper highlights how values may act as drivers of our behavior and pays particular attention to the values of the entrepreneur, thereby linking the existing debate on moral agency with the field of corporate social responsibility. (shrink)

We investigate the entrepreneurial opportunities and ethical dilemmas presented by technological turbulence. More specifically we investigate the line between Baumol’s [J. Polit. Econ. 98 (1990) 893] productive (e.g. innovation), unproductive (e.g. rent seeking) and destructive (e.g. criminal) entrepreneurship through three examples of Internet innovation – spam (destructive), music file sharing (unproductive), and Internet pharmacies (potentially productive). The emergence of accessible Internet technologies, under present norms, has created the potential for all three entrepreneurial activities. Because of the propensity for self-serving biases (...) and for bending the rules, the need for creativity in overcoming obstacles and overall liabilities of newness, entrepreneurs are likely to challenge established industrial morals and laws. Unlike new entrants, incumbents must abide by the currently accepted norms, and thus suffer from “liabilities of oldness”. The challenge for new entrants is to change sociopolitical legitimacy, whereas incumbents need to defend the established norms. We discuss competitive and other issues that result from technological turbulence and innovation. (shrink)

Many argue that transgenic technology will have wide-ranging implications for farmers in developing nations. A key concern is that competencies may be destroyed by predominantly foreign multinational transgenic technologies, exacerbating problems of social exclusion in the case of subsistence farmers. Conversely, those that fail to adopt the technology may become uncompetitive, particularly in commodity-based export markets. Drawing on interview data conducted in Brazil and supporting data collected in North America, Europe and China, we found that the impact of transgenic technology (...) varies. It has less impact on farmers that adapt the products to their crop systems and environment, and greater negative implications for less formally educated subsistence farmers in consequence of both complexity and compatibility. Earlier attempts at industrializing agriculture through technological innovation led to vastly improved agricultural output and exports, but the benefits of productivity was not equitably distributed [D. Lee: 2005, American Journal of Agricultural Economics 87, 1325-1334], nor was it designed to meet specific local environmental and socioeconomic farmer conditions, exacerbating social exclusion. Multinationals attempting to introduce transgenic technology without considering the broader social and ethical implications will invite resistance. We discuss the implications for policy makers, multinationals and small-scale farmers. (shrink)

There is a growing need to increase our understanding of ethical decision making in U.S. based organizations. The authors examine the complexity of creating uniform ethical standards even when the meaning of ethical behavior is being debated. The nature of these controversies are considered, and three important dimensions for ethical decision making are discussed: leaders with integrity and a strong sense of social responsibility, organization cultures that foster dialogue and dissent, and organizations that are willing to reflect on and learn (...) from their actions. Leaders with integrity demonstrate consistency between vision and action that promotes trust, regularly concern themselves with developing moral standards, and are proactive agents of change in an increasingly complex world. Organizational cultures that support dialogue suspend judgments and increase their capacity to think together towards new levels of understanding. Ethical concepts evolve in these organizational cultures, and actions are informed and responsible. Organizations that reflect on their actions engage in double loop learning so that the time taken to reflect on the past and present leads to a more judicious and ethical future. In essence, the authors point to organizational guidelines for ethical decision making that lead to an increase in members' capacity to think and act ethically. (shrink)

This study investigates the relationship between workers'' perceptions of distributive and procedural justice afforded by a grievance system and their more general belief in an underlying moral order in the workplace. Using samples representing five ocupationally distinct groups, the presence of any moderating effects of occupation received only weak support. Consistent with previous work, however, workers'' perceptions of procedural justice (i.e., fairness in the process) were a stronger predictor of workers'' belief in workplace justice than were perceptions of distributive justice (...) (i.e., fairness of outcomes). (shrink)

Unethical conduct has reached crisis proportions in business :A1–A10, 2011) and on today’s college campuses :58–65, 2007). Despite the evidence that suggests that more than half of business students admit to dishonest practices, only about 5 % of business school deans surveyed believe that dishonesty is a problem at their schools :299–308, 2010). In addition, the AACSB which establishes standards for accredited business schools has resisted the urging of deans and business experts to require business schools to teach an ethics (...) class, and fewer than one-third of businesses schools now teach a business ethics course at the graduate or undergraduate levels. In this paper we briefly introduce the status of business ethics education and report the results of a survey of business students, deans of the top business schools, and business ethics subject matter experts about ten ethical outcomes. We then offer five specific recommendations to encourage business ethics faculty and decision makers to improve the teaching of business ethics. (shrink)

How is ethical theory used in contemporary teaching in business ethics? To answer this question, we undertook a survey of twenty-five of the leading business ethics texts. Our purpose was to examine the ways in which normative moral theory is introduced and applied to cases and issues. We focused especially on the authors' views of the conflicts and tensions posed by basic theoretical debates. How can these theories be made useful if fundamental tensions are acknowledged? Our analysis resulted in a (...) typology, presented here, of the ways in which normative theory, and the difficulties within it, are handled in business ethics texts. We conclude that there is a serious lack of clarity about how to apply the theories to cases and a persistent unwillingness to grapple with tensions between theories of ethical reasoning. These deficiencies hamper teaching and ethical decision-making. (shrink)

Sexual harassment is a problem for many organizations. Organizations must understand that sexual harassment lies within the broader context of sex discrimination and inequality of opportunity in the workplace. Sexual harassment is both an illegal and unethical practice. Companies need to implement a policy which respects the rights of individual employees by prohibiting sexual harassment. This policy need to be clearly stated in the company Code of Ethics and enforced rigorously.

The essence of the ethical issues pertinent to business activities is the harm or benefit that occurs as part of a company's resource transformation process. A typology is developed that sorts ethical issues according to three variables: (1) the nature of the harm, (2) the nature of those harmed and (3) the transformation stage where the harm occurs. Propositions are formulated that would enable analysts and practitioners to predict the degree of legal condemnation of, and stakeholder retaliation to, harms generated (...) by questionable moral reasoning. An organizational harm analysis is then constructed as a decision making tool that could supplement cost/benefit analysis. (shrink)

Industrial pollution is of both national and international concern in the context where one country's emissions contribute to the problem of global warming. Existing studies have focused on government and regulations rather than on employees. The context of this study is in respect of 472 workers in seven Chinese energy companies in Shanxi province in China, one of the biggest coal mining regions and a region most responsible for environmental pollution. The key findings are two-fold: first, employees' values were positively (...) correlated with attitudes toward the environment, which also correlates with perceived corporate citizenship; second, the ownership type of the firm had a significant influence on corporate citizenship, employee values and their attitudes toward environment. Contrary to existing beliefs, Stateowned enterprises in China have much poorer ratings on all the three constructs compared to privately owned companies. The results highlight the role of the government and policy makers in shaping employees' attitudes toward the environment, and in turn the corporate citizenship of the Chinese energy industry. (shrink)